BT has expressed disappointment over Ofcom’s announcement that it will no longer require Sky to make available Sky Sports 1 and Sky Sports 2 to other platforms at a pre-determined rate.
The regulator said the Wholesale Must Offer (WMO) was no longer needed as Sky was now supplying the channels to a number of pay-TV providers on commercial terms. It follows a review to see if the legislation was still required.
“We will consider our legal options in the light of this decision and, in the meantime, continue to offer our customers access to Sky Sports 1 and 2,” a BT spokesperson told Broadband TV News. “Ofcom has said it is important for Pay TV retailers to have access to key Sky content to be able to compete effectively in this market, and that they want consumers to have access to these channels. We therefore expect Sky to behave appropriately so that we can continue to offer our customers access.”
Unsurprisingly, Sky was more welcoming of the decision: “We are pleased that Ofcom has decided to remove the WMO condition. As the evidence demonstrates, we are, and have always been, more than happy to make our channels available on other platforms,” said a Sky spokesperson.
Pressure from the telco contributed to the initial introduction of the WMO in 2010. It was instantly the subject of an appeal to the Competition Appeal Tribunal (CAT). It found that Ofcom had misinterpreted the evidence in concluding that Sky was not a willing wholesaler of its premium channels. The decision reached the Court of Appeal, which found that CAT had not taken into account Ofcom concern over Sky’s ratecard as offered to new entrants. That process is continuing.
A separate complaint from BT made in June 2013, and currently the subject of an Ofcom investigation, alleged Sky was abusing its dominant position by making wholesale supply of Sky Sports 1 and Sky Sports 2 to BT’s YouView platform conditional on BT wholesaling its BT Sport channels to Sky for retail on Sky’s satellite platform.
BT has been developing its own sports offer, acquiring rights to the Premier League, and notably an exclusive deal for Champions League and Europa Cup matches.